Vietnamese firm expanding LNG collab with two US energy giants

PV Gas, a subsidiary of Vietnam Oil and Gas Group (Petrovietnam), has signed agreements with two Texas-based energy majors, Excelerate Energy and ConocoPhillips, to cooperate on sourcing liquefied natural gas (LNG) from the United States.

According to PV Gas, the cooperation agreements were signed during a working trip to the United States. The event was attended by Vietnam’s Minister of Industry and Trade Nguyen Hong Dien, Vietnamese Ambassador to the United States, Nguyen Quoc Dung, and company representatives.

The Vietnamese firm said discussions during sideline meetings with the U.S. duo revolved around expanding long-term LNG supply to support the implementation of Vietnam’s Power Master Plan VIII. LNG cooperation principles were agreed to help meet the increasing demand for electricity production in the country as domestic sources decrease.

While the details of the deal with ConocoPhillips remain unknown, Excalarate disclosed that a memorandum of understanding (MoU) was signed with PV Gas providing for what the partners say will be a reliable and stable supply of LNG from the United States as early as 2026.

Under the agreement, the two parties will also evaluate PV Gas’ LNG supply requirements and define a joint strategic framework to execute LNG sourcing that meets Vietnam’s energy needs.

“We are pleased to partner with PV Gas on this significant opportunity,” said Oliver Simpson, Executive Vice President and Chief Commercial Officer of Excelerate. “This collaboration underscores our commitment to helping Vietnam meet its growing energy needs while also providing a downstream market for U.S. LNG supply. Together, we look forward to contributing to a sustainable and secure energy future for Vietnam.”

PV Gas believes the import agreements will help it implement the country’s LNG import plan, expected to reach 9 million tonnes per annum (mtpa) by 2030, increasing to 15 mtpa by 2035, with an estimated total value of $7.2 billion.

As part of its efforts to boost energy security in the country, the Vietnamese player recently shared that it intends to add a floating storage and regasification unit (FSRU) to its Thi Vai LNG terminal.

Last week, Excelerate held a keel-laying ceremony for an FSRU, Hull 3407. Now that the construction of the ship’s hull has started, the U.S. player anticipates it will be ready for launch this June.